SF 2195 – IUB telecommunications regulation clean- up
HF 2324 – Mortgage lenders federal guidelines, Consumer Credit Code
HF 2408 – Iowa One Call underground facilities notification
FLOOR ACTION:
SF 2195 is a recommendation by the Iowa Utilities Board (IUB) because of an extensive public Notice of Inquiry (NOI) over the past year to review and update IUB telecommunications statutes and regulations. All industry stakeholders were invited to participate in the process; 15 companies and organizations filed written comments and most participated in a daylong workshop on the topic. Input was reviewed by staff and resulted in a set of recommendations for changes to IUB statutes and rules. The Senate approved a non-substantive technical update to IUB telecommunications regulations earlier in the session. This bill contains the more substantive recommended policy changes that resulted from the NOI and modifications made by the Commerce Committee. Those include setting an explicit six-month transition period for de-tariffing so that companies have time to complete the transition in a reasonable and orderly manner, and requiring retail telecommunications providers give notice of rate increases to customers. These providers have been rate deregulated the past six years with no requirement regarding customer notification and the IUB has received no customer complaints on this issue since then. However, the IUB and industry stakeholders agree that providing notice is important and codifying it makes sense. This also addresses the municipal utilities’ concern that they are already required to give notice through their public processes. [3/11: 48-0 (Ernst, Houser absent)]
COMMITTEE ACTION:
HF 2324 is a joint effort by the Iowa Bankers Association, the Iowa Attorney General’s Office, the Iowa Credit Union League, and the Iowa Divisions of Banking & Credit Unions to modernize the state’s mortgage and consumer finance laws to better coordinate with changes included in the Dodd-Frank Act. These organizations began meeting months ago to create a legislative proposal, and lawmakers have continued the discussions through the committee process to bring this compromise forward. The House unanimously passed HF 2324 on March 4. The Senate Commerce Committee met as a Subcommittee of the Whole to review the proposal. It allows mortgage lenders to choose to follow federal law if a mortgage loan falls within certain parameters. After consultation with the Iowa State Bar Association, this new option is available to deposit-taking mortgage lenders only. For all non-depository lenders, or if a mortgage loan falls outside of the prescribed parameters, it is subject to existing state law. The bill increases the jurisdictional limit of the Iowa Consumer Credit Code to match federal Truth in Lending limits and it will be indexed to inflation annually. Currently, the definitions of consumer credit sale, consumer lease, consumer loan and consumer rental purchase agreement provide that the amount financed or payable cannot exceed $25,000. The bill also amends the definition of “finance charge” within the Iowa Consumer Credit Code to match existing interpretation of the banking and credit union regulators as well as the Iowa Attorney General’s Office. This new calculation is prospective only beginning July 1, 2014. [3/11: short form]
HF 2408 makes minor but important updates regarding communication between excavators, facility operators and Iowa One Call notification center. Currently, excavators are required to report to the notification center at least 48 hours before a planned excavation, excluding Saturdays, Sundays and legal holidays. This specifies that notices received at the center after 5 p.m. will be processed as if they were received at 8 a.m. the next business day, and that notices are valid for 20 calendar days from the date received at the center. An excavation may proceed prior to the 48 hours if the excavator has been informed by the notification center that the locating and marking of underground facilities is complete. The bill also:
• Requires the excavator to use one of the following, or a combination of the following, to mark the area to be excavated: white paint, white flags or white stakes. Exceptions are:
1) The precise location, direction, size and length of the proposed excavation area can be clearly and adequately defined and described during the call to the notification center or during an on-site preconstruction meeting;
2) Electronic means of white-lining is supported by the notification center and used by the excavator; or
3) Physical pre-marking can be shown to be impractical.
• Requires the operator of an underground facility to report to the notification center that the marking is complete. New language requires the notification center to report to the excavator as to whether all operators reported whether markings were completed or not. This must take place not later than the expiration of the 48-hour period.
• States that there cannot be any excavation performed within 25 feet of an underground natural gas transmission line unless a representative of the line is present at the excavation area. However, the excavation can continue if the representative fails to show up as long as the excavator reports this to the notification center and the excavator takes reasonable precautions to protect the underground facilities.
• Requires the operator to report to the notification center if an operator determines that they do not have any facilities in the proposed excavation area. This notification must occur by the operator within 48 hours of receiving the proposed excavation notice.
• Requires the Board to establish by rule a consistent manner of notifications provided to the excavator.
HF 2408 specifies that nothing precludes an excavator, operator or the notification center from having or engaging in additional communications other than what is required in law. [3/11: short form]